UAE Cold Chain Logistics Market - Growth, Trends, COVID-19 Impact, And Forecasts (2022 - 2027)

The market is segmented By Service (Storage, Transportation, Value Added Services (Blast Freezing, Labeling, Inventory Management)), By Temperature Type (Chilled, Frozen), By End Users (Horticulture (Fresh Fruits & Vegetables), Dairy Products (Milk, Ice-cream, Butter, etc.), Meats, Fish, Poultry, Processed Food Products, Pharma and Life Sciences, and Other Applications).

Market Snapshot

Major Companies
Study Period: 2018-2027
Base Year: 2021
CAGR: >5.5 %

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Market Overview

The UAE cold chain logistics market is expected to register a CAGR of more than 5.5% during the forecast period of 2022-2027.

The COVID-19 outbreak in the UAE benefited the cold chain industry. The market's growth has been driven by increased demand for cold chain facilities such as storage and transportation, notably for pharmaceutical products. In 2021, Abu Dhabi-based healthcare procurement company partnered with Abu Dhabi Ports to establish the UAE’s largest cold storage facility for Covid vaccines.

During the pandemic, demand for cold chain services for transportation of temperature-sensitive products, including vaccines and pharmaceutical medications, has increased nationwide for vaccine distribution. Al-Futtaim Logistics, an integrated logistics and supply chain provider announced expansion by opening a new cold storage facility in Dubai. The facility is located at Jebel Ali South Free Zone and has space for more than pallets with temperatures ranging from +18 degrees Celsius to -22 degrees Celsius. Thus, this has led to a developing partnership among corporations to distribute vaccines both domestically & globally, necessitating the use of cold transportation.

Furthermore, Cold Transportation is expected to increase rapidly shortly. Increased demand for domestic and local drug manufacture, increased investment in road infrastructure, and a growing preference for pharmaceutical exports are all expected to support the country's revenue growth in cold chain transportation.

Scope of the Report

A cold chain is a temperature-controlled distribution network that combines refrigerated production, cold storage, and cold chain transportation facilities through the air, water, and rail lines to ensure that the required low-temperature range is always maintained. With rising food consumption, a growing tourist base, and increased demand for frozen and ready-to-eat food, the market for cold chains will likely develop rapidly in the future.

The market is segmented By Service (Storage, Transportation, Value Added Services (Blast Freezing, Labeling, Inventory Management)), By Temperature Type (Chilled, Frozen), By End Users (Horticulture (Fresh Fruits & Vegetables), Dairy Products (Milk, Ice-cream, Butter, etc.), Meats, Fish, Poultry, Processed Food Products, Pharma and Life Sciences, and Other Applications).

The report offers market size and forecasts for the UAE cold chain logistics market in value (USD billion) for all the above segments and the impact of COVID-19 on the market.

By Services
Storage
Transportation
Value Added Services(Blast Freezing, Labeling, Inventory Management)
By Temperature Type
Chilled
Frozen
By End Users
Horticulture (Fresh Fruits & Vegetables)
Dairy Products (Milk, Ice-cream, Butter, etc.)
Meats, Fish, Poultry
Processed Food Products
Pharma and Life Sciences
Others

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Key Market Trends

Dominance of 3PL Companies over Cold Chain logistics

Since UAE government taking initiatives such as the Dubai IoT strategy, the Dubai Blockchain strategy, the introduction of drones for last-mile delivery, the UAE National AI program, Smart Dubai 2021, the Dubai 3D printing strategy, the Dubai Data Initiatives, and the National Innovation Strategy 3PL companies in the UAE are turning their attention to the logistics and warehousing market, cold storage, dry storage, and supporting retail facilities. The bulk of cold storage warehouses are now centered in Dubai and Abu Dhabi, but as a result, many 3PL businesses were aiming to extend their operations across other cities as well to capitalize on the growing potential in the industry.

The UAE government provides a wide range of services to non-governmental organizations, assistance agencies, and their suppliers and manufacturers, including air and ocean freight, customs clearing, warehousing, and local distribution of relief supplies. These services are backed up by control tower and data analytics services designed to provide increased freight visibility for emergency crises of any level of urgency and complexity.

Also, UAE is attracting Foreign Direct Investments to deepen its ties with fast-growing economies to reposition itself, resulting in the home of logistics giant DP World. DP World will run a logistics park in the Saudi port of Jeddah. DP World, one of the world's major port operators and controlled by the government of Dubai, already runs a container terminal in Jeddah Islamic Port, where the park would be located. It can accommodate 2.4 million cargo containers annually and is the UAE's primary import destination.

Aramex, an Emirati multinational logistics located in Dubai, is also expanding its presence. The corporation obtained a US$381 million investment from French parcel delivery provider GeoPost in October 2021 to increase both companies' international presence.

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Rising Imports of Food Products and Pharmaceuticals

Due to the country's dry climatic condition, around 80.0 percent of the country's food requirements are fulfilled by imports from nations such as Brazil, India, the United States, and others. The country also imports many medications and has a rising domestic pharmaceutical supply market. In recent years, the sector has also seen an exceptional expansion in consumer retail spending in the country.

The key driving element causing the healthcare business to grow at an alarming rate is Covid-19. Expansion of pharmaceutical firms' activities, the rise of Medtech businesses, and localized research and development in healthcare are important elements driving the UAE's healthcare industry boom. The UAE imported USD 4.08 billion in pharmaceutical items in 2019, and trade volumes increased from 33,000 tonnes in the first quarter of 2020 to 48,600 tonnes in 2021. Approximately 95% of global pharmaceutical businesses have a presence in the UAE, which enables logistics access to 43 countries globally.

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Competitive Landscape

The UAE Cold Chain Market is highly fragmented, with large companies claiming significant market share. The market is mainly concentrated in regions like the ports and free zones of Dubai and Abu Dhabi. The growing metropolitan population, well-developed transportation infrastructure, and proximity to the sea and airports have all contributed to the expansion of cold chain enterprises in these locations. Location, pricing, temperature range, product range, warehouse infrastructure, and industry experience are among the factors that cold chain companies compete on in the country.

Furthermore, global businesses are investing in the industry and purchasing local enterprises to expand their presence in the region. Local businesses are similarly investing in cold chain infrastructure to compete with multinational firms. Companies are also working to improve the cold chain and are continuously investing in logistics for fruits and vegetables, flowers, cosmetics, and consumer products.

Major players in the cold chain market are GAC Dubai, GSL Logistics, Mohebi Logistics, CEVA Logistics, RHS Logistics, and others.

Recent Development

March 2022: Maersk (an integrated container logistics company) opened its first Integrated Logistics Centre in Dubai, United Arab Emirates. The facility will handle a wide range of items from industries such as petrochemicals, retail and lifestyle, fast-moving consumer goods (FMCG), technology, and automobiles. The facility is perfectly situated, with quick access to seaport operations and the Al Maktoum International Airport. This will enable the facility to accommodate customers that require air cross-docking as well as those transporting less-than-container-load (LCL) goods.

July 2021: TSSC (company offering insulated and building solutions for commercial and residential properties) designed refrigerated trucks in the UAE. A chiller lorry or a refrigerated truck is a van that is designed to transport perishable goods.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Services

      1. 5.1.1 Storage

      2. 5.1.2 Transportation

      3. 5.1.3 Value Added Services(Blast Freezing, Labeling, Inventory Management)

    2. 5.2 By Temperature Type

      1. 5.2.1 Chilled

      2. 5.2.2 Frozen

    3. 5.3 By End Users

      1. 5.3.1 Horticulture (Fresh Fruits & Vegetables)

      2. 5.3.2 Dairy Products (Milk, Ice-cream, Butter, etc.)

      3. 5.3.3 Meats, Fish, Poultry

      4. 5.3.4 Processed Food Products

      5. 5.3.5 Pharma and Life Sciences

      6. 5.3.6 Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 GAC Dubai

      2. 6.2.2 Global Shipping And Logistics LLC

      3. 6.2.3 CEVA Logistics

      4. 6.2.4 RHS Logistics

      5. 6.2.5 Mohebi Logistics

      6. 6.2.6 Al-Futtaim Logistics

      7. 6.2.7 Hellman Worldwide Logistics

      8. 6.2.8 DB Schenker: Global Logistics Solutions

      9. 6.2.9 MH Khoory Trading & Ship Chandlers LLC

      10. 6.2.10 Port Khalid Cold Stores

      11. 6.2.11 Khalidia Shipping*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPENDIX

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Frequently Asked Questions

The UAE Cold Chain Logistics Market market is studied from 2018 - 2027.

The UAE Cold Chain Logistics Market is growing at a CAGR of >5.5% over the next 5 years.

CEVA logistics, Mohebi Logistics, RHS Logistics, GAC Dubai, Global Shipping And Logistics LLC are the major companies operating in UAE Cold Chain Logistics Market.

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